What real estate in Vietnam are foreigners allowed to buy? How to check the seller's honesty. How much taxes should be paid. And what does the newly-made owner get his hands on? A detailed procedure for conducting transactions with apartments and houses.
Foreigners' rights to purchase real estate
Real estate in Vietnam has been growing in value for several years in a row. For example, in 2015, according to analysts from CBRE and Colliers International, a square meter went up by 3-7%. At the same time, the cost of apartments remains low compared to other regions of Asia. Until recently, foreign citizens practically could not purchase real estate here. Property owners could be:foreign individuals making direct investments in Vietnam or opening companies with foreign capital and holding managerial positions;foreign individuals who have made a special contribution to the development of Vietnam and are especially noted for merits by the leadership or the National Assembly of the Socialist Republic of Vietnam;foreign individuals working in the economic, cultural and social spheres, with university degrees and special skills and knowledge necessary for Vietnam;foreign individuals who have married a Vietnamese citizen;enterprises with foreign capital (not a real estate agency) whose employees need to provide housing for living.On July 1, 2015, the real estate market in Vietnam "opened" to foreigners.Now all foreign entities and all foreign investment funds, banks, Vietnamese branches and representative offices of foreign companies can purchase real estate in Vietnam. Check all apartments at the https://vinestate.etagi.com/realty/
In addition, they are allowed to buy not only apartments, but also private houses (villas and townhouses), and their rights to own real estate have expanded significantly. The previous law allowed foreigners to acquire property solely for personal residence, but now they can lease, trade and inherit real estate.The government has made significant amendments to the housing legislation , according to which now a citizen of any country can come to Vietnam on a tourist visa and purchase a property on a lease for a period of 50 years with subsequent renewal. A foreign owner can resell his property, inherit, mortgage or sublease. Previously, to acquire real estate, it was necessary to live in Vietnam for at least a year. According to the new law, foreigners can buy no more than 250 detached villas in one administrative district and no more than 30% of housing units in an apartment building. Foreign buyers have the right to purchase an apartment in houses with the status of "residential commercial projects" in any area of the country where there are no restrictions for foreigners.
According to Vietnamese law, the state is the full and sole owner of land. Thus, the state recognizes only the right to use land, but not the right to property. The right to use land is transferred by the state through the transfer of land for long-term use or by leasing. Depending on the purposes of land use, the state establishes certain rights and obligations. The user of the land plot has the following rights: the right to exchange, assignment, sublease, inheritance, donation, surety. Foreigners who are married to a Vietnamese citizen have the same property rights as Vietnamese citizens. According to the Vietnamese housing law, every foreign citizen who has a Vietnamese visa in their passport can buy real estate in Vietnam.A foreigner has the right to rent out his property for any purpose that is not prohibited by law. However, it is necessary to obtain administrative permission from the Housing Administration of the People's Committee. The only exceptions are those overseas local property owners who are married to a Vietnamese citizen. Rental income is taxed, with the tax rate varying depending on the amount of income.
Rights and obligations of overseas property owners in Vietnam
Conditions for owning residential real estate for foreign individuals:A foreigner must have a valid passport with a stamp of permission to enter the country, stamped by the Vietnamese Immigration Department, not subject to diplomatic or consular immunities.
Optional: housing requirements, investments in Vietnam, work permit, social contributionmarriage to a local Vietnamese
However, foreigners who marry Vietnamese have the right to own property indefinitely. While foreigners who do not meet these conditions can only own a home for 50 years. This period can be extended for another 50 years, subject to the approval of the local People's Committee to which the property belongs. Unlike other foreigners, those who are married to Vietnamese citizens also do not have to notify the Housing Authority when renting out property. The new legal framework grants foreigners the same rights as Vietnamese when obtaining a mortgage.In the presence of residential real estate and a residence permit, a foreign citizen can freely leave and enter Vietnam without a visa.
Conditions for owning residential real estate for foreign companies:
Foreign businesses that are investing but not in real estate can purchase private homes for their employees, but cannot use them for leasing or other purposes.
Foreign organizations are allowed to own private homes, provided that:the term of ownership does not exceed the period specified in their investment certificates issued by the Vietnamese competent authorities;the property is intended only for use as living quarters, for its own personnel;renting out accommodation is not allowed.
Foreign organizations can own no more than 30% of the total number of apartments in an apartment building or no more than 250 private houses in one administrative region.
For national defense and public security purposes, foreign individuals and companies may not own housing in certain areas. The local Department of Construction publishes on its official website projects in which foreigners cannot own housing and the number of houses in which foreign ownership is registered. This database has not yet been developed for all cities and provinces in Vietnam.Payment for the purchase or rental of housing is made through credit institutions operating in Vietnam. To date, there has been no specific guidance regarding the currency control of these transactions.
